Customer Care Strategies
Different types of economies exist in the globe. The type of an economy that exists in a country is determined by the market forces that is demand and supply forces. Under these economic systems lie different industries that deal with production, distribution and supply of different products and services. Studies carried out show that ten percent of new companies join different industries per year (Alqahtani and Atkins, 2016) Entrance and exit of new businesses is a common phenomenon in any given economy because every market is controlled by the forces of demand and supply .In India, there is different multinational companies established such as Himalaya, Tata and many others. However, in this paper, in my case, I will focus on Xolo as one of the recently established multinational company whose roots are in India
Xolo Company is an Indian manufacturing company based Nodia India .It deals with manufacturing and selling of smart phones, tablets, computers and other devices. The company was founded in the year 2012 by Vishal Setigal and Lava International limited .The company was established by the owners as a way to fill the market gap that existed in the industry of smart phones productions. Apart from India, the company has spread its operation to the United Arab Emirates (UAE) (Sreenivasa and Bains, 2011)
Xolo as one of the multinational company based in India set up its diverse strategies to enable the business penetrate the already established market of mobile phone products and accessories. Apart from enabling it venture into this market, the main purpose of the set strategies is to enable the company achieve its targets and goals that were set before the start of the business (Miao, 2016) Critical evaluation of these strategies will clearly reveal which strategies are suitable and have played a role in the good performance and general success of the business. In general terms, a critical evaluation will be able to reveal certain characteristics of different strategies as discussed below (Faisal, 2016)
- a) Suitability of the strategy. By evaluating a strategy, one is able to know its suitability which refers to the ability of a strategy to address the major and key issues in relation to opportunities and constraints that an organization faces.
- b) Acceptability. This term is used to refer to the ability of determining whether a given strategy is able to meet the expectations put in place in a business by its owners and stakeholders. This analysis will help in the decision making as to whether to continue with the strategy or not.
- c) Feasibility. The term feasibility refers to practical application. This therefore tests whether the strategy set by a business to meet the organizations needs and goals is practically workable (Mani, 2012)
The following is a discussion that critically evaluates the strategies used by Xolo Company and suggestions on the same. This will clearly bring out the suitability, acceptability and feasibility of the strategies chosen by the business with an aim of meeting its goals
A.Customer Care Strategies
The major determinant of a business’s success is the level to which its clients are satisfied.Satified clients will always promote the business through a chain of referrals and painting of a good image of the business. Xolo uses the following four strategies in their customer care
Product Development Strategies
1). Great focus on the company’s –clients’ relationship.
The company not only focuses on the rate of conversation but also the relationship that it has with its clients. Their main objective is to please their customers so that they stick to the company. This strategy so far has helped the company retain a good number of its clients. For the five years of their operations, the company has been able to retain those old clients .These old ones have been continuously referring others to Xolo. Therefore, in order any firm to succeed it should rather be good customer relationships oriented rather than being rate oriented (Efficient Web Browsing on Smartphones, 2015)
2) Having a strong vetting procedures and processes The Company dedicates its time in understanding the customers who have complex needs and meet them adequately. The company by all means tries to understand the pain and the uniqueness of such clients and help them find solutions. This strategy will help in making the client to feel that his or her needs are taken care of despite of its complex nature and at the same time the client feels appreciated and taken care of by the company
The company boosts its customer relations by frequently communicating with them. The company does this on a weekly, monthly or quarterly basis whereby every client must speak with the company on a predetermined time. This is because the company has realized that for a good relationship to exist, both parties i.e. the customers and the company must actively engage on talks and general communication. Sarah Bannet in her article clearly states how a good communication existing between business and customers may lead to the business success. This communication according to the article should be clear, effective and efficient in terms of answering all the questions and concerns of the customer concerning products availability, prices and delivery (Terem, ?ajka and Rýsová, 2015)
4) Employing good and approachable staff
Xolo during its first two years of operations faced some challenges of underemployment of its employees and reduced sales. This led to the restructuring of the recruitment systems that focused on employing new few but serious sales personnel who could handle the customers well hence boost the volume of the phones manufactured Xolo is very keen in its recruitment of the human resources. The company does not just hire its employees for the sake of filling the vacant positions. Rather, it subjects its new staff to a thorough interview and later orients them in terms of customer care (Zahir, Ewert and Seshadri, 2013) By doing this, it is able to acquire friendly staff that are really concerned about meeting the well-being of the customers and talk to them in a good way that makes them approachable under any given circumstances
Marketing Strategies
B) Product Development Strategies
a) Like the most companies dealing in the manufacture of smart phone, Xolo entered the market to fill some gap in the market. Its aim was to bring the consumer an experience of feeling the real benefits smart phones by the invention of the latest android mobile phones with an Intel processor that is, the XOLO X900.Their choice of manufacturing new and unique brands helped them penetrate the Smartphone industry with some ease (Moldovanova, 2017)
- b)Reduction of imports
This strategy has got two advantages to the business. First; imports are normally expensive compared to the locally produced goods. This is because import duties may be sometimes unrealistically high. Therefore, local production may be strength to a business. Secondly, promotion of locally produced goods brings a sense of pride and ownership among the consumers (Zhang and Jiang, 2014) you may find a type of market whose demand for locally produced goods is high. Therefore a business that majors on local goods will have an advantage over others who are in the same industry
- C) Marketing Strategies Used By Xolo
Marketing strategy is very important because it defines techniques that a business uses in advertising and promoting its product .A good marketing strategy will mean that a company will be able to reach many people and penetrate well the market of its products. There are different perspectives used to describe a good marketing strategy. Xolo adopted its marketing mix as discussed below (The New Emerging Market Multinationals: Four Strategies for Disrupting Markets and Building Brands2014 1 Amitava Chattopadhyay, Rajee Batra and Aysegul Ozsomer The New Emerging Market Multinationals: Four Strategies for Disrupting Markets and Building Brands New York McGraw Hill 2012 320 pp. ISBN:978-0071782890, 2014)
1) Product
When coming up with strategies of marketing, a company must appropriately choose the products to deal with. Demand level of the products will determine decision making on this (Ryzhikova, 2014). A business should consider dealing with the most wanted products .Xolo’s products are highly dominants in the Indian and UAE markets. Being a subsidiary of Lava, its progress has been very impressive and stable therefore bringing difference in the Indian markets. The unique products have been able to offer its customers new experience with smart phones (Faisal, 2016)
2) Price
Price is a vital and a strong marketing tool that attracts or puts off many customers depending on the rates set by the company. A company should set realistic and affordable prices so as to attract many customers
3) Place
This refers to the location of the business and its accessibility. Therefore, when setting a business, its proximity from the potential buyers and also accessibility should be a matter of concern. Xolo’s products are majorly found in India and UAE.It has not expanded to the rest of the world.Also, the products are available on the online market in Amazon online store. Therefore, the company needs to readjust and restructure its marketing strategies in terms of place by ensuring that it takes its products to other countries and expand its online market as well (Smith, 2016)
4) Promotion
This is the last p which stands for promotion. A business may have good products, well prices but cannot reach large portion of the market due to lack of promotion. A business should choose an appropriate promotion channel egg internet, radio and TV depending on the nature of the products and the target market. During its first few years of its establishment, Xolo Company faced a lot of challenges in relation to its marketing strategies hence faced rough times as its sales reduced. This triggered the restructuring of the sales systems and retrenchment of some employees. Merging of the sales team of Xolo and Lava. This strategy was meant to salvage the adverse sales situation in the company. It is a strategy that was adopted by the company to reduce underemployment and underutilization of the sales team. This strategy saw the company increase its sales at a reasonable rate (Lyytimäki, 2012)
Secondly Xolo has promoted its product through e-commerce by doing online marketing (Warnaby and Medway, 2013) . This is a technique through which products are advertised through the internet for instance by use of blogs, social media and also online marketing. This according to my opinion is the most appropriate technique since it targets most ysoung people whose demand for mobile phone and it accessories is very high (Strohhecker and Größler, 2012)This technique was proven to work since the company’s sales rose from 10 percent to 15 percent. Another great promotion technique is merging with Liverpool FC.This is a way of boosting the image and reputation of the company hence promote its sales volume. Xolo has also formed partnerships with others such as Microsoft, companies that have already established their images and trust in the market (Chahine and Malhotra, 2018)
Conclusion
From the above analysis and evaluation, it’s evident that for any business to know its position in terms of growth and progress, it has the obligation of carrying out evaluation go strategies after every shortest period possible so that adjustments or improvement can be made where necessary. Therefore for every business that intends to grow and survive the tough maker competition, this evaluation must be carried out. An analysis of Xolo as my choice for the study has been carried out, by outlining and critically evaluating its strategies used in achieving different goals of the company (Corney, 2015). Most strategies have been found to be suitable since the techniques match with the company’s products, target market and type of the customers. Xolo also may adopt other new marketing strategies such as market segmentation since the demand for its product is not the same across the global. In some parts, the demand is elastic while in other parts demand is elastic making it possible for the use of market segmentation (Rakish and Khare, 2012) Xolo also need to be keen to avoid messes such as overemployement in order to achieve optimum utilization of their Human resources.
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